Share Sales by Corporations
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Share Sales by Corporations
Corporations can issue new shares but the number of such shares, although limited per transaction, was in fact unlimited because multiple transactions could take place very quickly.
This resulted in misuse that did not serve any purpose and many times ended in the bankruptcy of either the corporation or the enterprise.
Issuing shares remains of course an important way for corporations to raise cash but such share transactions will now remain in proportion to the total number of shares.
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